Polygon has reported that an Activision Blizzard shareholder has filed a lawsuit against the game publisher and their board of directors over the sale of the game developer to Microsoft. The lawsuit alleges that the company viloated provisions of the Securities Exchange Act.
The lawsuit states a multitude of complaints including several conflicts of interest, referencing ‘lucrative benefits’ for Directors and Officers at the game developer, as well as the ‘Golden Parachute’ for the CEO.
Kyle Watson, the shareholder filing the suit, is looking for the court to order Activision Blizzard to release a new SEC preliminary proxy statement that includes more facts, as well as “rescissory damages” should the transaction go through.
This latest action comes on the heels of ongoing industry scrutiny, another lawsuit filed in 2021 alleging negligence in sexual harassment and discrimination reports, as well as another hearing related to “union-busting” accusations being held by the National Labor Relations Board.
Read the full article here.
[…] The US Federal Trade Commission is asking questions and is seeking additional data from Activision Blizzard and Microsoft related to the antitrust review of their merger. The statement was made within a regulatory filing on Monday filied by Microsoft. This comes on as the developer continues to navigate the hurdles of it’s $68.7bn acquisition, amidst an ongoing campaign to alleviate regulators and lawsuits over the deal from shareholders including this one. […]
[…] latest development, comes on the heels of legal action, and added regulatory scrutiny, including a lawsuit filed by shareholders in February and the FTC requesting more data on the deal in […]